Pakistan Cotton market: seed cotton prices drift lower

Seed cotton prices were down on the cotton market on Saturday in the improved trade, dealers said. The official spot rate was unchanged at Rs 6950, they added. Prices of seed cotton in Sindh per 40 kg were down by Rs 100 to Rs 2400 and Rs 3000, in Punjab, prices lost the same amount to Rs 2400-3100, dealers said. In the ready session, around 7000 bales of cotton changed hands at Rs 6900-7200, dealers said.

According to the market sources, mills and spinners made regular buying to meet their needs in the absence of motivating factor. Cotton analyst, Naseem Usman said the traders were facing uncertainties due to falling prices of yarn and unavailability of power in textile industry.

Reuters adds: New York cotton ended up for the first time in three sessions on Friday as players looked beyond a drop in weekly exports and focused on inventories that were expected to stay tight due to lower output. The US Department of Agriculture said export sales of 2013/14 cotton totalled 78,200 running bales last week, well below the previous week’s tally of 120,300 bales.

The following deals reported as 1600 bales of cotton from Ghotki sold at Rs 7000, 1200 base from Dharki at Rs 7000, 1200 bales from Burewala at Rs 6900-6950, 400 bales from Yazman Mandi at Rs 6900-6950, 200 bales from Khanewal at Rs 7000, 200 bales from Mianwali at Rs 7025, 200 bales from Jalalpur at Rs 7050, 400 bales from Chichawatni at Rs 7050 and 200 bales from Ghazi Ghat (Credit) at Rs 7200, they added.